Mr BALDWIN - 1996-08-20
The minister has described the expansion of the Ord River irrigation project as the most exciting development on the horizon for Territory agriculture. What progress has been made to identify potential developers in this important new area?
ANSWER
Mr Speaker, I thank the honourable member for his question. I understand the interest he has in the area, given that it is within his electorate of Victoria River. The first joint meeting of the Western Australian steering and policy committee with the Northern Territory Ord Working Group was held in Darwin recently. It was jointly chaired by my counterpart from Western Australia, Hon Monty House, and myself. As a result of that meeting, it was agreed, inter alia, that a registration of interest process would commence on 24 August of this year, closing on 21 November, in an attempt to inform our governments of the level of interest in the Ord project. A national and international advertising campaign will be undertaken with a view to returning complete details to those who express an interest in the project.
In addition, an engineering feasibility study is being carried out by the Snowy Mountains Engineering Corporation and the Queensland Department of Primary Industry. This will refine our earlier estimates on the order of costs to a figure of plus or minus 10% to 15%. The public environmental consultancy has been let. That will be undertaken jointly by Western Australia and the Northern Territory. Major hydrogeological and geotechnical work will be undertaken in conjunction with those studies. Both studies are due for completion next year. As announced in the budget, the Northern Territory will be contributing up to $650 000 to those projects. The full stage 2 development will increase the area under irrigation from 11 000 ha to something like 75 000 ha. The reports will pave the way for the careful and sound development of an expanded agriculture industry based on the irrigation water from Lake Argyle. In addition, those reports will meet the statutory requirements of both
governments.
I have had a number of discussions with major Australian and multinational companies in relation to the development of the Ord. Interest has been expressed by major companies. They are lined up already, willing and keen to spend in excess of $650m to ensure this project goes ahead. Much of the $650m is contained in on-farm costs. However, given the nature of the land and of the industry, I foresee that it is capable of being properly developed only by some major company. The major interest expressed relates to the production of sugarcane. Of the 11 000 ha currently under irrigation at the Ord, some 7000 ha have now been put to cane sugar. Fully developed, one could expect the Ord to produce 500 000 t of sugar and 120 000 t of molasses per year. That will be a major contribution to Australia's export industry. To put it into some perspective, it would account for only 25% of the annual growth in the world sugar trade. In terms of world production, it is not very large. However, in terms of production in northern Australia, it is a major project.
With the success of the Ord project, the Northern Territory and Western Australian governments will be forced to reassess their agricultural resources. The vast quantity of water
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available across northern Australia, from the Fitzroy River in Western Australia to the Victoria and Daly Rivers in the Northern Territory, accounts for something like one-third of the annual water run-off in Australia. Properly utilised and developed, the Kimberley of Western Australia and the northern part of the Northern Territory can contribute significantly to Australia's trade performance in the future.
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ANSWER
Mr Speaker, I thank the honourable member for his question. I understand the interest he has in the area, given that it is within his electorate of Victoria River. The first joint meeting of the Western Australian steering and policy committee with the Northern Territory Ord Working Group was held in Darwin recently. It was jointly chaired by my counterpart from Western Australia, Hon Monty House, and myself. As a result of that meeting, it was agreed, inter alia, that a registration of interest process would commence on 24 August of this year, closing on 21 November, in an attempt to inform our governments of the level of interest in the Ord project. A national and international advertising campaign will be undertaken with a view to returning complete details to those who express an interest in the project.
In addition, an engineering feasibility study is being carried out by the Snowy Mountains Engineering Corporation and the Queensland Department of Primary Industry. This will refine our earlier estimates on the order of costs to a figure of plus or minus 10% to 15%. The public environmental consultancy has been let. That will be undertaken jointly by Western Australia and the Northern Territory. Major hydrogeological and geotechnical work will be undertaken in conjunction with those studies. Both studies are due for completion next year. As announced in the budget, the Northern Territory will be contributing up to $650 000 to those projects. The full stage 2 development will increase the area under irrigation from 11 000 ha to something like 75 000 ha. The reports will pave the way for the careful and sound development of an expanded agriculture industry based on the irrigation water from Lake Argyle. In addition, those reports will meet the statutory requirements of both
governments.
I have had a number of discussions with major Australian and multinational companies in relation to the development of the Ord. Interest has been expressed by major companies. They are lined up already, willing and keen to spend in excess of $650m to ensure this project goes ahead. Much of the $650m is contained in on-farm costs. However, given the nature of the land and of the industry, I foresee that it is capable of being properly developed only by some major company. The major interest expressed relates to the production of sugarcane. Of the 11 000 ha currently under irrigation at the Ord, some 7000 ha have now been put to cane sugar. Fully developed, one could expect the Ord to produce 500 000 t of sugar and 120 000 t of molasses per year. That will be a major contribution to Australia's export industry. To put it into some perspective, it would account for only 25% of the annual growth in the world sugar trade. In terms of world production, it is not very large. However, in terms of production in northern Australia, it is a major project.
With the success of the Ord project, the Northern Territory and Western Australian governments will be forced to reassess their agricultural resources. The vast quantity of water
Page 1508
available across northern Australia, from the Fitzroy River in Western Australia to the Victoria and Daly Rivers in the Northern Territory, accounts for something like one-third of the annual water run-off in Australia. Properly utilised and developed, the Kimberley of Western Australia and the northern part of the Northern Territory can contribute significantly to Australia's trade performance in the future.
Page 1509
Last updated: 09 Aug 2016